A simple financial principle that many people don’t incorporate into their budget is to consider that saving money is an expense. Some people may have a hard time understanding the idea of paying yourself first, let alone applying the concept.

Let’s face it, after paying the rent/mortgage, utilities, car payment, insurance, credit cards, etc., more often than not, there is never anything left over to save. That’s all the more reason to pay yourself first, before anything or anyone else gets paid! And the key to accomplishing that is to consider your savings to be an expense.

“A cardinal rule in budgeting and saving is to pay yourself first. Once your paycheck hits your account, wisdom has it that you should move some amount to savings even before you pay the bills.” – John Rampton

If you treat saving like an expense in your budget, then paying yourself first becomes less challenging. In other words you will be paying yourself first by treating your savings like a bill as you would any other bill, but make it the most important bill to pay. Make it the first bill you pay over any other bill. What can be more important than you!

I know what you’re probably thinking, if I do that, something will have to go without getting paid. And if that’s the case, then it will force you to look harder at what you could cut back on, find discounts for and/or even figure out how to increase your income in some way so those expenses don’t go un-paid. One thing is for sure, there can’t be financial freedom if you don’t pay yourself first.

Before you go, I want to invite you to join my FREE email list community. By signing up today, you’ll get notifications of my latest posts. Plus access to my FREE Resources Library. Click Here to sign up!